Water rate hikes?

Monday

Jun 10, 2013 at 10:57 AMJun 10, 2013 at 11:06 AM

Council mulls 2.5 percent fee increase

By Ami RidlingDaily News Staff Writer

YREKA – Water and wastewater fee increases may be on the horizon for Yreka utility customers. The city staff proposal was described by Yreka City Council member John Mercier as “a little bit unsettling,” considering the proposal is coming at the heels of the final hike in a multi-year rate increase schedule adopted in 2008.

Paul Reuter, managing engineer of PACE Engineering, made a presentation at the Yreka City Council meeting last Thursday, during which he shared the findings in the City of Yreka Water and Wastewater Utility Rate Study draft that his firm recently completed. No action was taken.

He told the council that an annual increase of approximately 2.5 percent for base water and consumption fees and a 2.5 percent increase for wastewater fees over the next five fiscal years is recommended. However, the proposal includes decreasing water service setup fees from $100 to $50.

“The city’s water system is unique,” Reuter commented, adding that its infrastructure includes a 23-mile pipeline from Fall Creek. He noted that the equipment is costly to maintain relative to other municipalities whose water sources are closer to town. Yreka Public Works director Steve Neill explained that if the schedule is implemented, customers’ base rate hikes will depend on the size of their meters.

He pointed out that the majority of dwelling units are equipped with five-eighths-inch meters. In turn, for those with this meter size, base fees would jump from $31.60 to $34.04 by the end of the five-year cycle in the 2017-18 Fiscal Year.

“This schedule gives customers some certainty about their rates over the next five years,” said Neill. “These adjustments are really just intended to keep us up with the anticipated costs of operation and maintenance.”

Yreka Finance Director Rhetta Hogan said the fee increase would be subject to the Proposition 218 protest process.

If the council adopts the five-year rate increase schedule, the city will be required to send notices to all water and wastewater utility customers. Each property owner will have the option to mail in a protest form. If the majority of property owners mail in a protest form, and the forms are validated, the council will not be permitted to enact the fee increase schedule.

“The council is concerned by any kind of fee increase,” said Yreka mayor David Simmen, adding that the council’s goal is to promote the city’s growth. “Unfortunately, we all have to step up and absorb that.”

Council member Bryan Foster said he likes the idea of lowering the water setup fee from $100 to $50.

“I am a rate payer just like everybody else,” he commented. “I cringe every time I see the sprinklers go on.”

Yreka city manager Steve Baker said it is advantageous to establish an increase schedule rather than wait several years as maintenance costs rise, and then propose a significant increase.

Council members Rob Bicego and Rory McNeil were absent from the meeting. Mercier, Foster and Simmen opted to postpone voting on the draft approval until the next regular meeting June 20.

Background According to Neill, in 1998, the base water rate for five-eighths-inch meter users was $7.50 per month. A rate study completed by PACE Engineering recommended for rates on this meter size to be increased to $22.50.

In an effort to minimize financial hardship, in 1999, the council voted to raise the base rates to $12.15 per month.

From 1999 to 2007, minimal rate increases were implemented for utility operating costs, said Neill.

Then, in 2008, the city council adopted a five-year water and wastewater rate increase schedule. That year, the flat rate for five-eighths-inch water meter users was raised to $19.80 per month.

This monthly fee jumped to $31.60 in the final fee hike implemented in October 2012. From 2008-12, the monthly wastewater fee jumped from $29 per month to $42 per month.

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